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The passage of the Inflation Reduction Act in 2022 has triggered changes to many tax forms, tax form instructions, and other publications prior to the start of the 2023 tax filing season.According to ...
The IRS reminded taxpayers who earn wages to use the Tax Withholding Estimator tool to adjust their 2023 withholding. Checking now and making necessary adjustments early in the year may help taxpaye...
The IRS released the optional standard mileage rates for 2023. Most taxpayers may use these rates to compute deductible costs of operating vehicles for business, medical, and charitable purposes. Some...
The IRS has released frequently asked questions (FAQs) about energy efficient home improvements and residential clean energy property credits. The Inflation Reduction Act of 2022 (IRA) amended the cre...
The Internal Revenue Service and the U.S. Department of Labor announced they have renewed a memorandum of understanding (MOU) under which the two agencies will continue to work together to combat empl...
The Treasury Department and IRS have announced that brokers are not required to report additional information with respect to dispositions of digital assets until final regulations are issued under C...
The IRS recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation received in 2020. This resulted in nearly 12 million ...
In his second inaugural address, Oklahoma Gov. Stitt highlights his plans for reducing taxes over the next four years. Among other topics, the address highlighted Gov. Stitt's plan to reduce spending ...
Deputy Secretary of the Treasury Wally Adeyemo was out promoting the positives of the Inflation Reduction Act in an apparent effort to counteract the messaging from Republicans who are working to abolish the law as well as to replace the IRS with a national sales tax.
Deputy Secretary of the Treasury Wally Adeyemo was out promoting the positives of the Inflation Reduction Act in an apparent effort to counteract the messaging from Republicans who are working to abolish the law as well as to replace the IRS with a national sales tax.
Speaking January 17, 2023, at a White House event, Deputy Secretary Adeyemo described the law as "the most significant piece of legislation in our country’s history when it comes to building a clean energy future," and highlighted the law’s tax incentives aimed at getting more Americans to invest in clean energy.
For example, he noted the $1,200 available to people for making homes more energy efficient with new insulation, doors, windows, and other upgrades. He also highlighted the up to $2,000 available to upgrade existing furnaces and air conditioners with energy efficient heat pumps, as well as tax credits to help defray the cost of installing solar panels on their home rooftops.
Adeyemo also highlighted the tax incentives related to the purchase of clean vehicles, including up to a $7,500 tax credit for a new vehicle and up to $4,000 for a pre-owned vehicle.
"Treasury is working expeditiously to provide clarity and certainty to taxpayers, so the climate and economic benefits of this historic legislation can be felt as quickly as possible," he said.
Adeyemo also referenced the additional funding the Internal Revenue Service is receiving due to the Inflation Reduction Act. He noted that a "well-resourced IRS … is essential for effective implementation of the IRA’s clean energy credits and other tax benefits, and for ensuring fairness of our tax system overall."
Countering Republican Messaging
Adeyemo’s comments come as Republicans in their new majority in the House of Representatives begin to work on abolishing the IRA and dismantling the IRS.
Already passed in the GOP-led House is the Family and Small Business Taxpayer Protection Act (H.R. 23), which would eliminate the additional IRS funding in the IRA and in particular targets the 87,000 new hires by the agency. GOP messaging continues to misrepresent those new hires as all being IRS agents who will target low- and middle-income taxpayers with audits, despite the stated purposed of those new hires to be primarily for customer service, with the new agents that do get hired to be used to target the wealthiest taxpayers in an effort to ensure they are paying their fair share and to close the tax gap.
Indeed a one-sheet on the H.R. 23 posted to the House Ways and Means website highlights that the bill is targeting the 87,000 new hires which it claims will all be agents. The bill passed the House on January 9, 2023, by a 221-210 vote along party lines. The Senate is likely not going to take up the bill and President Biden already threatened a veto if the bill made it to his desk.
The Congressional Budget Office estimates that enacting this bill would actually reduce revenue by nearly $186 billion and increase the deficit by more than $114 billion.
House Republicans also introduce a bill (H.R. 25) that would abolish the IRS and replace its revenue generating taxation authority with a national sales tax of 23 percent, with a means-tested monthly sales tax rebate available to taxpayers who qualify. No further action on this bill has been taken.